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XYZ just deposited $3,700 in an account that will earn 7.1 percent per year in compound interest for 9 years. If Svetlana deposits $4,000 in

XYZ just deposited $3,700 in an account that will earn 7.1 percent per year in compound interest for 9 years. If Svetlana deposits $4,000 in an account in 3 years that earns simple interest, then how much simple interest per year must Svetlana earn to have the same amount of money in 9 years from today as XYZ will have in 9 years from today?

a.

11.92% (plus or minus .02 percentage points)

b.

7.94% (plus or minus .02 percentage points)

c.

9.41% (plus or minus .02 percentage points)

d.

12.88% (plus or minus .02 percentage points)

e.

None of the above is within .02 percentage points of the correct answer

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